Further efforts needed to work towards a sustainable and equitable economy, Says New ILO Report

While the world economy still struggles to recover from the economic crisis, the overall outlook for Indonesia in 2012 was largely positive thanks to the country’s strong focus on the development of economic infrastructure to address constraints to growth as well as robust household consumption and growing investment.

Press release | Jakarta, Indonesia | 04 April 2013
JAKARTA (ILO News): While the world economy still struggles to recover from the economic crisis, the overall outlook for Indonesia in 2012 was largely positive thanks to the country’s strong focus on the development of economic infrastructure to address constraints to growth as well as robust household consumption and growing investment. In addition, Indonesia is fast becoming a world leader in the promotion of sustainable development and it has committed itself to not only achieving job rich economic growth, but has also set ambitious targets for the promotion of development that is environmentally sustainable.


Employment is the intersection that can bring together economic, social and environmental objectives - Peter van Rooij, Director of the ILO in Indonesia.
Reconciling these objectives and driving forward sustainable growth with equity represents a distinct set of challenges for the world of work. Given the considerable diversity in socio-economic conditions across Indonesia and high levels of informality and vulnerability, realizing inclusive and sustainable growth requires further attention to the integration of social and environmental safeguards in its development framework, a new report by the International Labour Organization’s Office for Indonesia says. The report is going to be launched on Thursday, 4 April, at Sari Pan Pacific Hotel, Jakarta.

"Employment is the intersection that can bring together economic, social and environmental objectives,” said Peter van Rooij, Director of the ILO in Indonesia. He further explains that, “Economic activities provide people with livelihoods and also impact on the environment and climate change - and vice versa. A key point here is ensuring that employment is sustainable in the short, medium and long term - which is intricately linked to the use of the environment and the decency of work."

The report, Labour and Social Trends in Indonesia 2012: Working for a sustainable and equitable economy, highlights gains that have been made due to strong growth performance in recent years. For example, employment growth continues to outpace labour force growth and unemployment is at lows that have not been seen in over fifteen years. However, deficits in employment quality persist, with over 60 per cent of employed people considered to be "vulnerable workers" and the gap between average minimum wages and average nominal wages continuing to narrow over time.

The report analyses issues of sustainability and equity through looking at environmental, social and economic trends in the labour market. “The Indonesian economy has made strong progress towards its development targets. However, a challenge is to ensure the inclusiveness of economic growth and the quality of employment, while promoting environmental sustainability and responding to climate change,” said the author of the report, Emma Allen, economist for the ILO Jakarta Office.

For further information please contact:

Ms Emma Allen, Economist, Tel.:+6221 3913112 ext. 159, Email

Ms Gita Lingga, Media Relations Officer, Tel.:+6221 3913112 ext. 115, Email